Wednesday, March 26, 2014

Spring Airlines Japan to launch services on June 27th.

On March 25th, Spring Airlines Japan (IJ/SJO) announced that they will commence operations on June 27th. The Tokyo/Narita (NRT/RJAA)-based LCC's initial destinations are Hiroshima (HIJ/RJOA), Saga (HSG/RJFS), and Takamatsu (TAK/RJOT), and will start with two daily round-trips to each city utilizing a fleet of three Boeing 737-800s. Tickets will go on sale on April 8th at 1200 JST.

From Narita, fares to Hiroshima will start at 5,690 JPY, to Saga from 5,700 JPY, and to Takamatsu from 5,630 JPY. Its highest fare for each route has been set at around 25,000 JPY, but the airline says that price is for 'government paperwork purposes', and in reality they don't intend to offer that fare. Competitor Jetstar Japan (GK/JJP) already serves the Narita - Takamatsu market twice daily offering fares as low as 3,990 JPY, but Spring Airlines Group Chairman Wang Zhenghua emphasizes they "don't want to get into a fare war".

Meanwhile, Japan's largest travel agency JTB has agreed to purchase up to 5% of Spring Airlines Japan's shares, a move which the tour firm denies as a foray into the LCC business, but instead "an investment to secure seats for package tours in preparation for the Tokyo 2020 Olympics", according to JTB President and CEO Hiromi Tagawa. Spring Airines Japan becomes only the third airline JTB has invested in, after Japan Airlines (JL/JAL) and All Nippon Airways (NH/ANA). "ANA and JAL's modest capacity expansion will be insufficient to meet the booming travel needs", Mr. Tagawa adds.